Jurisdictions
Regions
Industry Sectors
02/06/21
JERSEY: More online GST planned for 2023.
As published on jerseyeveningpost.com, Wednesday 2 June, 2021.
LARGE online retailers could be required to start charging GST on sales to Jersey customers from the start of 2023, the Treasury Minister has said.
Deputy Susie Pinel has indicated that she intends to press ahead with plans to recoup more of the 5% sales tax from Islanders who choose to shop ‘offshore’, which would probably involve the likes of Amazon and eBay collecting the tax and sending the resulting revenue to the Government of Jersey.
Earlier this year the minister announced her intentions to bring more online retailers within the remit of GST and the Treasury Department indicated that it might also remove or lower the ‘de minimis limit’ of £135, below which the tax is not currently charged on any imported goods.
Jersey Consumer Council chairman Carl Walker yesterday said that asking retailers from outside the Island to collect the tax could lead to some deciding to withdraw from selling to Jersey, due to the extra work that would be involved in sending goods to a relatively small market.
In a written response to a letter from Senator Steve Pallett, of the Corporate Services Scrutiny Panel, Deputy Pinel confirmed that a review of the matter was continuing, the results of which would be published shortly.
‘The review is progressing to plan and I expect to receive final advice by the end of June, enabling me to make proposals within the next draft Government Plan,’ she said.
‘That said, based on the work done so far, I am fairly clear in my own mind what I want to propose and I am content for the Comptroller of Revenue to brief you on a confidential basis given that this remains policy-in-development.
‘I do envisage making amendments to the GST Law to mandate larger offshore retailers registering for GST (some already do voluntarily) but probably commencing no sooner than January 2023.
‘Existing mechanisms for Islanders to account for GST on goods received from smaller offshore retailers will, of course, remain in place.’
